Consulting

Hinterhuber & Partners is a global management consulting firm. We work collaboratively with leading organizations in the private and public sector to deliver lasting improvements in capabilities and performance. Clients benefit from our ability to combine industry experience with academic excellence. Our recommendations are actionable, our thinking is independent.

We improve client performance via developing leadership capabilities. Leadership is about the clarity of a firm‘s long-term orientation, the anticipation and management of change, the development of talent and the achievement of above-average, sustainable results.

Business Cases

A large IT software solutions provider responded to the RfP of a major Finnish Bank, in need of a back-end to manage a vast amount of financial operations for their end-consumers. Also an Asian company in the same industry responded to the RfP, offering an apparently similar solution at a price that was significantly lower. The Bank asked for clarifications and invited our client to check their price.

Hinterhuber & Partners Solution

When Hinterhuber & Partners was contacted, the team in charge of the proposal, feared that the only option available was to heavily discount and match the competitor’s price; some were also wondering if it would even be profitable to continue at a matched price, given their opportunity cost. Hinterhuber & Partners discussed internally with engineers, product-specialists and marketing managers; what’s been discovered is that there was a great potential in calculating for the customer, how much superior features meant for them, in a financial way. Features of a solution like a 1% higher up-time, or a faster response time in case of problems, servers located in the EU, and others, dramatically affect a business relying 24/7 on transactions. Hinterhuber & Partners applied the so-called Value Quantification, a key pillar of value-based pricing to find out what the value delivered to the consumer was.

Impact on client’s business

These advantages, once translated into lower costs, lower risks, and higher performance, proved that the price premium price with respect to the Asian competitor, was nothing more than a small investment that would pay for itself already in the first year thanks to quantified benefits, written on the contract, that our client was delivering. Our client won the contract in spite of higher price, proving that the superior value offered was actually more important than an up-front lower price. The company mastered Value-based Pricing and new prices are set based on the value delivered to their customers and not anymore on internal costs.